The way those lots work is this (learned from brother in law who once worked in such a lot for a month). They buy cars at auction. Say a Chevy for $2,000. They price it at $5,000, deal down to $4,000, and want $2,000 down, and finance the rest at 10% They put a GPS device in car telling you it helps you, but it is meant to help them repossess.
But they do provide valuable service. They wash the car and do a minor tune-up before sale.
I would not say so much that they are taking advantage of the poor as that they are taking advantage of the ignorant. After all, with a little effort one could get on Craig's list and buy a car for $2,000, and avoid the markup and interest fees. |
